THE proposed merger between Nippon Cargo Airlines (NCA) and Japan Airlines’ (JAL) cargo division has stalled.The merger was planned for completion on 1 April, with NCA absorbing JAL’s cargo operations and holding a 50 to 60 per cent stake in the new business, JAL holding the rest.However, JAL has now filed for bankruptcy protection and is being led through restructure by the state-owned Enterprise Turnaround Initiative Corporation (ETIC). ETIC is keen for NCA to takeover JAL Cargo completely, which it doesn’t want to do.According to a senior executive “the talks may be broken off” because of the impasse.